Presented below is information related to Farr Company. Retained earnings, Decem
ID: 2468643 • Letter: P
Question
Presented below is information related to Farr Company. Retained earnings, December 31, 2014 $ 664,500 Sales revenue 1,504,600 Selling and administrative expenses 243,000 Hurricane loss (pre-tax) on plant (extraordinary item) 287,900 Cash dividends declared on common stock 33,600 Cost of goods sold 855,900 Gain resulting from computation error on depreciation charge in 2013 (pre-tax) 526,300 Other revenue 129,900 Other expenses 103,300Prepare in good form a multiple-step income statement for the year 2015. Assume a 30% tax rate and that 80,000 shares of common stock were outstanding during the year
Explanation / Answer
Paticular Amt. Sales Revenue 1,504,600 Other revenue 129,900 Total Revenue 1,634,500 Cost of goods Sold 855,900 Selling & Administrative Exp. 243,000 Other Expenses 103,300 Depriciation 526,300 Loss on sale of Plant 287,900 Profit before tax -381,900 Divedend 33,600 Retained profit previous year 664,500 Reatined profit transferred to balance Sheet 249,000